Analyzing LivePerson (NASDAQ:LPSN) & Bitfarms (NASDAQ:BITF)

LivePerson (NASDAQ:LPSN) and Bitfarms (NASDAQ:BITF) are both small-cap technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.

Profitability

This table compares LivePerson and Bitfarms’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LivePerson	-51.89%	N/A	-8.39%
Bitfarms	-48.26%	-4.48%	-3.71%

Volatility & Risk

LivePerson has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, Bitfarms has a beta of 3.77, indicating that its share price is 277% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for LivePerson and Bitfarms, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LivePerson	1	0	0	0	1.00
Bitfarms	1	1	2	0	2.25

Bitfarms has a consensus price target of $3.90, indicating a potential upside of 79.72%. Given Bitfarms’ stronger consensus rating and higher probable upside, analysts plainly believe Bitfarms is more favorable than LivePerson.

Valuation and Earnings

This table compares LivePerson and Bitfarms”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LivePerson	$228.89 million	0.17	-$67.23 million	($13.74)	-0.23
Bitfarms	$229.28 million	5.71	-$138.65 million	($0.23)	-9.43

LivePerson has higher earnings, but lower revenue than Bitfarms. Bitfarms is trading at a lower price-to-earnings ratio than LivePerson, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

79.8% of LivePerson shares are owned by institutional investors. Comparatively, 20.6% of Bitfarms shares are owned by institutional investors. 2.0% of LivePerson shares are owned by company insiders. Comparatively, 9.5% of Bitfarms shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Bitfarms beats LivePerson on 10 of the 14 factors compared between the two stocks.

About LivePerson

LivePerson, Inc. engages in conversational artificial intelligence. It enables brands to leverage the Conversational Cloud's intelligence engine to connect with consumers through an integrated suite of mobile and online business messaging technologies. The company offers the Conversational Cloud, an enterprise-class digital customer conversation platform, which enables businesses and consumers to connect through conversational channels, such as voice, in-app, and mobile messaging. It also provides professional services; LivePerson's Conversational AI, including conversation builder, manager, and intelligence, and intent manager. In addition, it provides Voice AI, conversational intelligence and insights, and integration services. The company sells its products to Fortune 500 companies, Internet businesses, online merchants, automotive dealers, educational institution, public sector, and not-for-profit organizations. It operates in the United States, Canada, Latin America, South America, Europe, the Middle East, Africa, the United Kingdom, and the Asia-Pacific. LivePerson, Inc. was incorporated in 1995 and is headquartered in New York, New York.

About Bitfarms

Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was founded in 2017 and is based in Toronto, Canada.